What is Collective Bargaining?

Whether you're a beginner or an expert, you will find this Glossary useful.

Collective bargaining is the process where a group of employees or members of a trade union meet with representatives from an organization to negotiate labor contracts which regulate working conditions.

Collective bargaining definition

Collective bargaining is the process where a group of employees or members of a trade union meet with representatives from an organization to negotiate labor contracts which regulate working conditions.

This collective bargaining model consists of workers submitting proposals that they consider ideal, but show willingness to settle for less, and the management willing to give more than that's publicly acknowledge.

Steps of collective bargaining

1. Preparing: organizing a group of workers to represent the employee's issues

2. Arguing: both sides argue on their part of the deal

3. Signaling: showing through different types of signaling if the proposal could be accepted or not

4. Proposal: one side makes a proposal in order to end the argument and reach the agreement

5. Packaging: structuring the proposal too tempting to refuse

6. Bargaining: identifing a common ground which facilitates a settlement between two parties, both of them trying to dilute the other side's proposal